MAKING A BUSINESS CASE FOR S1000D
Transcript of MAKING A BUSINESS CASE FOR S1000D
Demonstrating cost reductions of 20% to 63%, this White Paper tells the true story about Return On Investment and helps you establish a business case for S1000D.
EXECUTIVE SUMMARYIs your customer demanding support for a new data standard and advanced technical information resources while your organization is facing budget cuts? If so, you are not alone. This has become a typical scenario in today’s aerospace and defense industry, where budgets are tighter than ever, particularly when it comes to technical publications.
Ensuring that technical information is accurate and up-to-date is only half of the battle for today’s technical authoring teams. With the widespread use of Interac-tive Electronic Technical Manuals/Publications (IETMs/IETPs), customers have high expectations for intelligent information resources. Maintenance and repair organizations have enjoyed measurable benefits from the use of interactive information—benefits such as faster look-up times, reduced training costs, tasks performed correctly the first time, fewer broken parts, and faster turnaround of aircraft and equipment during repair and maintenance visits. No one wants
words, you need to do more—with less.
This is where S1000D comes into the picture. It makes so much sense to author and manage technical information in data modules that the benefits to content reuse and multi-channel publishing are easy to recognize. And since S1000D is an international standard used by aerospace and defense companies worldwide, us -ing it will position your organization for future business. But—is the risk involved with adopting S1000D worth the potential cost savings? What about the invest -ment that needs to be made in technology, training, and implementation? And how can you justify such an investment at a time when budgets are so tight?
After reading this White Paper perhaps the right question to ask is—how can you not justify such an investment?
This White Paper explains how S1000D is able to drive cost savings by using real-world ROI case studies from the Defense and Energy sec-tors. It discusses how manufactur-ers of mission-critical systems have achieved ongoing cost benefits in a number of surprising areas beyond content reuse and improved qual-ity, and will explain how increased system availability and technician
overall return on investment in
S1000D. We hope you find it helpful
in assessing how S1000D will impact
your organization’s productivity and
ongoing production costs.
The White Paper is based on a webi-
nar presented by CORENA and Data
Conversion Laboratory (DCL).
MAKING A BUSINESS CASE FOR S1000D
A CORENA WHITE PAPER
1MAKING A BUSINESS CASE FOR S1000D - © 2013 CORENA
e�ciency can contribute to your
to give up these gains to o�set budget cutsin technical publications. In other
TM
Data Laboratory Inc.Conversion
Introduction........................................ 1
Technical publication challenges............................................ 2
The promise of S1000D ................... 2
S1000D Business Case considerations.................................... 3
What is involved with S1000D implementation ............................... 4
Technical publications cost and value drivers................................ 5
ROI Cases............................................... 8
Availability—another important value parameter............ 10
End-to-end focus—summarizing the savings........... 13
Justifying the investment in S1000D............................................. 15
Conclusion........................................... 17
TABLE OF CONTENTS
In order to intelligently discuss a return on investment, we need to consider the
challenges and cost drivers associated with the production of technical publica -
tions. In today’s environment, the following list of challenges is typical:
• Decreased budgets
• Decreased time to create new publications/IETMs
• Decreased time to update publications
• Multi-channel publishing requirements
• Requirements for intelligent and interactive electronic technical manuals
• Need for interoperable data
• Globalized workforce and need to interchange content with partners and
customers
Requirements around interoperability, content reuse, and multi-channel publish-
toward the standard that was developed to address these challenges for the
aerospace and defense industries: S1000D.
S1000D is an international specification for the procurement and production of
technical publications that is based on XML (or eXtensible Markup Language).
Used heavily in aerospace and defense, S1000D has gone through extensive
revisions under the auspices of the S1000D Steering Committee, and members
include the AIA, ASD and A4A. It has a very active user community and extensive
vendor support—all of which point to S1000D as a standard that will continue
to be used for many years, even as technology improves and user expectations
grow. Therefore, it is a good choice for documenting complex equipment with
long lifecycles, such as aircraft, ships, submarines, and rail.
But more importantly, S1000D can drive significant cost savings because of the
capabilities it provides:
Content re-use
•
• Increases quality and consistency of manuals
• Decreases the amount of data that needs to be maintained/converted
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TECHNICAL PUBLICATIONCHALLENGES
THE PROMISE OF S1000D
MAKING A BUSINESS CASE FOR S1000D - © 2013 CORENA
ing very quickly point us toward the e�ective use of XML. And more speci�cally,
Reduces the e�ort to create/update technical information
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Multi-channel publishing
• XML can be rendered to paper and various electronic forms for computer
and handheld devices
•
specific aircraft configurations or tail number ranges)
Data interoperability and interchange
• XML provides for data integration, analysis and interchange
• Enables platform standardization
If you see a correlation between the capabilities of S1000D and the challenges
and cost drivers facing technical publications, that is because the specification
was designed with these very factors in mind.
NEW PROGRAMS
If you are working on a new program, the decision about whether to use S1000D
will probably be an easy one. This is because you will likely be mandated to de-
liver your data in S1000D XML rather than an older MIL-STD or ATA SGML format.
S1000D is an excellent choice for a new program as it ensures data interoperabil-
ity and longevity as adoption of this international standard continues to grow.
Because S1000D is used by both military and commercial programs, data can be
multi-purposed for military derivatives of commercial equipment and vice versa.
As vendor support and development for S1000D continues to grow and be
maintained, the development and tool support for older military and civil aviation
specifications will not—especially with limited funds available.
All of these factors contribute to the business case for S1000D. And for a new
program, these factors can be enough to justify S1000D adoption, even without
showing a return on investment.
EXISTING PROGRAMS IN NON-XML FORMAT
If your data is in non-SGML or -XML format, your business case for going to XML
will require you to consider the cost of data conversion, retooling and user train-
ing. However, it is possible that a good business case can be made for the adop-
tion of S1000D based upon the factors mentioned earlier. In fact, an overall cost
reduction of approximately 60% over legacy manual production costs is typical
for organizations who have converted their non-structured data to S1000D XML
(independently reported by customers of both Data Conversion Laboratory and
CORENA).
S1000D BUSINESS CASECONSIDERATIONS
MAKING A BUSINESS CASE FOR S1000D - © 2013 CORENA
S1000D
For new programs the decision
whether to use S1000D should be an
easy one!
Di�erent output of the same data is possible (e.g. customized manuals for
EXISTING PROGRAMS ALREADY IN XML FORMAT
If your data is already in a non-S1000D SGML or XML format, the business case
for S1000D becomes more challenging since many of the benefits of S1000D
also apply to any SGML or XML-based specification. With that said, there is a
content-based. Structure-based specifications such as MIL-STD-38784 define
the structure of a publication but do not classify its content, thus limiting the
types of information that can be gleaned from the data. In contradistinction,
content-based specifications such as MIL-STD-2361 classify content as well as
defining structure.
Since S1000D is a content-based specification, the largest improvement in data
utility is achieved when you convert from a structure-based specification rather
than a content-based specification.
Nevertheless, there are still considerations regarding vendor tool support, data
format longevity, and the cost of maintaining multiple publishing environments
that contribute toward a favorable business case for S1000D. And in the final
analysis, since S1000D is the future of technical publications for both military
and civil aviation programs, it may make good business sense to standardize on
S1000D.
DATA CONVERSION FOR LEGACY PROGRAMS
If you are working on a legacy program, you will probably need to consider the
requirement for data conversion. Depending on the data format, as mentioned
above, this could be a potentially expensive process—so it is important that this
is done by those with S1000D expertise, and that the data analysis is performed
correctly.
XML AND S1000D SKILL SET
Your technical authoring team will need an XML skill set and will need to under-
stand the specific XML authoring requirements involved with S1000D.
S1000D BUSINESS RULE DEVELOPMENT
Depending on where you are in the supply chain, you may also need to develop
S1000D Business Rules before you begin authoring. (For more information about
S1000D Business Rules, see CORENA’s White Paper, “Understanding S1000D
Business Rules” on www.corena.com.)
BUSINESS RULES
STRUCTURE VERSUS
CONTENT
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S1000D is a content-based specifi-
cation which classifies content as
well as defining structure.
WHAT IS INVOLVED WITHS1000D IMPLEMENTATION?
MAKING A BUSINESS CASE FOR S1000D - © 2013 CORENA
Development of Business Rules
may be needed. But there is help
available for that!
di�erence between SGML or XML speci�cations that are structure-based versus
TECHNOLOGY
Finally, S1000D requires technology in order to take advantage of all the oppor -
tunities for cost savings that it provides. This is not something you want to try to
do on a file system. You will not see the cost benefits described in this White Pa -
per without using technology that leverages S1000D with automation, content
reuse, and multi-channel publishing. Two key pieces of technology are needed for
you to fully leverage S1000D:
• An S1000D Common Source Data Base (CSDB) is critical to S1000D produc -
tion, and if you open the S1000D specification itself, you will see that a CSDB
is called for right on the title page. A CSDB is essentially a content manage -
ment system that has been specialized for the purpose of managing S1000D
data and which addresses the requirements prescribed for a CSDB in the
S1000D specification.
• Interactive Electronic Technical Publications (IETPs) may be a required
deliverable for your S1000D project in addition to paper or PDF. Fortunately,
S1000D was designed with multi-channel publishing in mind—so a good
CSDB will be able to easily provide outputs to both PDF and IETP from the
same S1000D publication module. An IETP will allow you to fully exploit the
capabilities of S1000D by letting your information consumers filter data by
aircraft tail number, conditions, or equipment type, as well as providing a
simulations, 3D models, video, and more.
Some of the most significant cost drivers faced by technical publications organi-
zations today include:
• The need to document multiple configurations of multiple variants of mul-
tiple products; if this leads to the duplication of content (and it often does),
• The requirement for multichannel publishing to produce a variety of formats
such as PDF, IETP, HTML, or XML and a growing list of devices such as smart
phones and tablets; multiplying the number of required output formats can
also multiply the cost of producing your documentation.
• The need to interchange and track data deliveries across multiple organiza-
tions within a global supply chain; managing and tracking data deliveries
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TECHNICAL PUBLICATIONS COST AND VALUE DRIVERS
MAKING A BUSINESS CASE FOR S1000D - © 2013 CORENA
A CSDB IS NEEDEDThe S1000D specification specifically calls for a CSDB right on the front page.
platform for many di�erent types of S1000D content, such as animations,
the e�ort and cost to maintain that content is also duplicated.
manually can lead to mistakes, incorrect deliveries, the need to repackage
and redeliver data multiple times and worst of all, data loss—all of which
drive costs upward.
S1000D was developed with these very specific problems in mind, and can help
you realize significant cost savings if implemented in the right way. To do this,
you need to focus on the following value drivers:
•
technical publications; this can be accomplished with S1000D-driven con -
tent reuse and automation.
• New additional revenues coming from advanced IETPs and parts ordering.
• Being able to charge a higher price as a result of improved quality.
• Generating significantly more revenues by increasing availability of mission
critical systems.
So with this in mind, let’s look at the traditional way of handling projects—either
at a Defense Logistic Organization or at a Systems Integrator.
Typically, a prime contractor gets logistics support information from several sup-
pliers. These suppliers in turn get their logistics support information from several
sub-suppliers. This would comprise a total system, except that the defense
organization or systems integrator is likely to have several projects with similar
characteristics.
For example, a helicopter manufacturer may have several programs, but with
several common components (from the same sub-supplier). The defense logis-
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ILS DATA
Softwareapplication
PROJECT 1 PROJECT 2 PROJECT 3
SUPPLIER SUPPLIER SUPPLIERSUPPLIER SUPPLIER SUPPLIER SUPPLIER SUPPLIER SUPPLIER
SUB-SUPPLIERSUB-
SUPPLIERSUB-SUPPLIER
DEFENSE O
RGAN
IZATION
OR SYSTEM
INTEG
RATORILS DATA
Softwareapplication
ILS DATA
Softwareapplication
PRIMECONTRACTOR
PRIMECONTRACTOR
PRIMECONTRACTOR
INDU
STRYDEFEN
SE ORG
ANIZATIO
NO
R SYSTEM IN
TEGRATO
RIN
DUSTRY
FIGURE 1 - TRADITIONAL INTEROPERABILITY PROBLEM
MAKING A BUSINESS CASE FOR S1000D - © 2013 CORENA
VALUE DRIVERS
Consider relevant value drivers for your business.
Reduction of the e�ort and cost to author, manage, publish, and maintain
tics organization may have several army programs, also consisting of several
common units across a system platform. In such a traditional set-up, interoper-
“standards based” approach using S1000D.
A “standards-based” approach in this case refers to Integrated Logistics Solu-
tions based on industry standards such as S1000D for technical documentation,
PLCS for Product Data Management and SCORM for Computer Based Training.
Using this standards-based approach, all projects use the same methods, tools,
and interchange methodologies between sub-suppliers, prime contractors and
customers, making all processes unified and standards-based. Likewise, updat-
ing and exchange of information is in accordance with predefined rules.
Business rules define how a project exchanges information and what kind of vali -
dation checks are done on information being transferred between parties. This
ensures that the information being imported into your CSDB (Common Source
Data Base) is always correct. All incorrect or invalid information is rejected and
should be returned to the sub-supplier for correction.
With this scenario, the systems integrator or defense logistics organization has
one common system across all projects. This means one software infrastructure,
one viewing tool, and one set of user competencies that need to be developed.
This enables personnel to be used across multiple programs and provides the
freedom to choose from amongst a variety of COTS IT suppliers and consultants.
ENHANCED OPERABILITY
When all projects use the same methods, tools, and interchange methodologies, there is a great potential for major cost savings.
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FIGURE 2 - ENHANCED INTEROPERABILITY
MAKING A BUSINESS CASE FOR S1000D - © 2013 CORENA
ability is poor. It is ine�cient. And it is expensive. Now, let’s contrast this with a
All of this represents the potential for major cost savings and significant quality
improvements, both for suppliers and customers.
So now let’s look at some real ROI cases. The ROI examples used for this paper
are associated with savings resulting from the reuse of XML-based information.
Some real-life ROI cases include:
• 63% cost reduction by an aerospace engine manufacturer that simultane -
ously increased the number of parts catalogs from 81 to 132, while reducing
the number of authors from 18 to 3
• 20% productivity gain by aircraft mechanics by providing customized job
cards (for example, an engine removal procedure was reduced from 100
• 48% cost reduction in the production of technical documentation using
S1000D
• 20%+ cost reduction in the production of computer-based training by using
S1000D and SCORM
Let’s examine these last two ROI cases in more detail.
In this example, the company had been documenting Integrated Defense Sys-
tems for years with MS-Word and structured FrameMaker. They were delivering
thousands of units of remote weapons stations to a multitude of platforms and
to a multitude of customers, along with ongoing product updates and modifica-
tions.
This company did not have a hard requirement for S1000D, but had a desire to
increase its aftermarket business and reduce costs. So after determining that
the S1000D specification was a good fit for their documentation, they made the
decision to move ahead with adoption.
using MS-Word versus structured FrameMaker were very similar. In fact, the
whether Word or FrameMaker was used. In other words, just using a “structured”
produce technical documentation.
#1EXAMPLE
PRODUCTION OF ELECTRONIC PUBLICATIONS USING S1000DRESULTS IN 48% COST REDUCTION
Multiple cost reductions have been reported from organizations having adapted S1000D.
-63%
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ROI CASES
MAKING A BUSINESS CASE FOR S1000D - © 2013 CORENA
-48%
-20%
are taken from di�erent parts of the Logistics Support Process, but all examples
pages to 30 pages, thus making 200 mechanics more e�cient!)
In their existing authoring environment, they had found that the e�ort to author
e�ort for various authoring projects was approximately the same, regardless of
format (FrameMaker) did not make much of a di�erence in the overall e�ort to
The biggest challenges noted by the company were:
• Lack of configuration control
• Less than optimal reuse of information units
So with these challenges in mind, the company implemented S1000D and fo-
cused on the following areas:
• Improved configuration control
•
• Improved author productivity (focus on content creation only; no formatting
needed)
• After only 9 months, the company was able to demonstrate a 48% cost
reduction (in terms of hours) compared to the average of earlier projects. In
addition to the 48% cost savings:
• 87 technical publications were produced in only 3.5 years (that is 2 weeks
per publication)
• Projects can start later and still finish on time
• More work is accomplished with fewer personnel
• Revision cycles have been reduced from 3 months to 3 days
In this example, the company wanted to reduce the costs associated with pro-
ducing their Computer-Based Training. The existing methods for creating CBTs
involved the use of MS-PowerPoint and special CBT editors, which allowed for
limited content reuse and configuration control. This was especially problematic
when there were changes to the aircraft.
So the company embarked on a project to reuse 3D models from CATIA together
with S1000D data modules. First, the 3D models from CATIA were reduced and
converted to 3D XML. Next, scripts were developed to generate a mapping be -
tween the 3D XML from CATIA and the XML from the S1000D Data Modules.
The scripts focused on mapping:
• Task numbers
• Task descriptions
• Hot spots on the 3D images
• 3D logic
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#2EXAMPLE
PRODUCTION OF COMPUTER-BASED TRAINING USING S1000D RESULTS IN 20%+ COST REDUCTION
MAKING A BUSINESS CASE FOR S1000D - © 2013 CORENA
Reuse of information units that are common among di�erent model types
Mechanics working on an aircraft can now perform Computer-Based Training and
Simulation Scenarios in a web-based system. Any changes to aircraft design are
reflected in the CATIA models and those changes are mapped (via the 3D XML)
to the S1000D based work instructions. This means that aircraft mechanics can
now easily update their Training and Simulation environments with minimal ef -
fort.
The cost reductions resulting from this project are well over 20%.
Now let’s look at another very important value parameter: availability.
CONSEQUENCES OF DEALING WITH PAPER AND/OR ELECTRONIC DOCUMENTS
An energy company performed a study to determine how the availability of cor-
rect and intelligent technical information would contribute to the increased avail-
ability of their energy facilities. They found that facility availability was impacted
by:
• Mean Time Between Failure (MTBF) – this is also known as “Reliability”
• Mean Time To Repair (MTTR) – this is also known as “Maintainability”
• Mean Waiting Time (MWT) – this is also known as “Supportability”
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WHAT IS THE VALUE OF 1% IMPROVED AVAILABILITY?
An energy company determined the value of improved availability and was blown away. We’ll show you how to use the calculation for your busi-ness!
FIGURE 3 - MAINTENANCE TRAINING SIMULATOR (MTS)
AVAILABILITY - ANOTHERIMPORTANT VALUE PARAMETER
MAKING A BUSINESS CASE FOR S1000D - © 2013 CORENA
The major factor that impacts MTBF or Reliability is maintenance. And the conse -
quences to maintenance of not having correct and intelligent technical docu -
mentation are:
• Long lead-time to find information
• High risk of using information that is not up-to-date
• Maintenance tasks take longer to accomplish
The major factor that influences MTTR or Maintainability is the ability to repair or
maintain equipment quickly and easily. And the consequences to maintainability
of having incorrect or non-intelligent content are:
• Long lead-time to find information
• Maintenance tasks take longer to accomplish
There are several major factors that influence MWT or Supportability, including:
• Long lead-time to locate and purchase the right Spares
• Long lead-time to find information
• High risk of using information that is not up-to-date
• High management cost
All of these elements impact the availability of a mission critical system regard-
less of industry, and all of these elements can be reduced or eliminated by ensur-
ing that users always have access to correct and intelligent content.
CONTROL YOUR MAINTENANCE
Having correct and intelligent techni -cal documentation are critical to maintenance—and maintenance is key to availibility.
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DESIGN
REDUNDANCY
MAINTENANCE
ABILITY OF THE OPERATOR
ABILITY TO BE SUPPORTED
TESTABILITY
ABILITY TO BE REPAIRED
COMPLIANCE
TOOLS
SPARES
TECHNICAL INFORMATION
ADMINISTRATION
MTBFRELIABILITY
MTTRMAINTAINABILITY
MWTSUPPORTABILITY
AVAILABILITY
CONSEQUENCES
A. Long time to find informationB. High risk in using not updated informationC. Long time to perform maintenance tasksD. Long time to purchase the right spare partsE. High management costs
A+B+C
C
D
A+B
E
FIGURE 4 - FACTORS IMPACTING AVAILABILITY
MAKING A BUSINESS CASE FOR S1000D - © 2013 CORENA
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AVAILABILITY CALCULATION
Availability, then, is calculated as a function of MTBF, MWT and MTTR. MTBF can
be improved by reducing the number of failures (shown in brown in the illustration
below). MWT can be improved by quicker reaction times and better preparation
prior to a task (shown in grey in the illustration below). And MTTR can be im-
proved by faster repair times (shown in blue in the illustration below).
In the first row (“Before”) of the table above, we see an example of the number
process using S1000D. This example shows 90% availability. The bottom row
(“After”) shows the impact that having correct, current and intelligent technical
information has on the same processes:
• Finding data / documentation was improved from 8 to 4 hours
• Finding spare parts was improved from 4 to 2 hours
• Rework because of wrong instructions was reduced from 2 to 1 hour
• Rework because of misunderstood instructions was reduced from 2 to 1 hour
• Control and test was reduced from 4 to 2 hours
By applying these new values in the formula for availability, the availability would
increase from 90% to 94%.
Now consider these two examples of the value of 1% availability as determined
by this energy company:
• 1% availability of a windmill is worth 15,000 EUR per windmill per year
• 1% availability of a nuclear reactor is worth 5 million EUR per year
MTBF MWT MTTR AVAILABILITY
Require -ments under
control
Discovery Report error
Trouble shoot
Find data or docu -
ment
Find spareparts
Rework wrong
instruc -tions
Rework mis -
under -stood
instruc -tions
Control and test
MTBF
MTBF + MWT + MTTR
Before 200 h 0,5 h 0,5 h 1 h 8 h 4 h 2 h 2 h 4 h 90%
After 200 h 0,5 h 0,5 h 1 h 4 h 2 h 1 h 1 h 2 h 94%
MTBF MWT MWT MWT MWT MTTR MWT MTTR MTTR MTBF
Production ProductionDiscovery Report error TroubleshootFind
documents RepairFind spare
parts RepairControl
and test
Less failuresQuicker reaction
and more accurate preparation
Quicker to repair
Value of 1% availability in one average nuclear reactor: 50.000.000 SEK/year
Value of 1% availability in one average wind mill: 100.000 SEK/year
FIGURE 5 - EXAMPLE OF IMPROVED AVAILABILITY
MAKING A BUSINESS CASE FOR S1000D - © 2013 CORENA
+ 1% ~ 15,000 EUR
1% availability is worth 15,000 EUR per windmill per year. For a nuclear reactor the number is 5,000,000 EUR.
of hours spent on di�erent tasks in each category prior to implementing the new
When we look at the end-to-end process for the production of technical publica-
tions based on the S1000D standard, our experience is that we can save:
• 20% in transforming LSA data to Data Modules
• 45% for Authors using S1000D (we illustrated a case with 48% savings
above)
• 60% for Authors of Parts Catalogs
• 20% for Authors of Computer-Based Training (we illustrated a case with
20%+ savings above)
•
If we make the following assumptions:
• Hourly rate of 70,00 EUR (or use USD)
• 1 person converting LSA data to S1000D data modules
• 20 authors of data modules
• 2 authors writing IPCs
• 5 authors of job cards
• 10 authors of computer-based training
• (Total of 38 people)
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END-TO-END FOCUS- SUMMARIZING THE SAVINGS
FIGURE 6 - END-TO-END OVERVIEW OF SAVINGS
MAKING A BUSINESS CASE FOR S1000D - © 2013 CORENA
20% for improved mechanic e�ciency
Using this example of 38 people making 70 EUR or USD/hour, improved work
EUR/USD!
If we then include intelligent data in an IETP and its impact on 50 mechanics, the
savings increase to 37,440 hours or 2.6M EUR/USD!
14MAKING A BUSINESS CASE FOR S1000D - © 2013 CORENA
Savings
Persons Hours/year Percent Hours EUR
Converting LSA data to Data Modules 1 1.600 20% 320 22.400
Authors of Data Modules 20 32.200 40% 12.800 896.000
Authors of IPC 2 3.200 60% 1.920 134.400
Authors of Job Cards 5 8.000 40% 3.200 224.000
Authors of CBT/Simulation 10 16.000 20% 3.200 224.000
Aircraft mechanics 0 - 20% - -
Total 38 21.440 1.500.800
Hourly rate (EUR) 70
Hours per year 1.600
Savings
Persons Hours/year Percent Hours EUR
Converting LSA data to Data Modules 1 1.600 20% 320 22.400
Authors of Data Modules 20 32.200 40% 12.800 896.000
Authors of IPC 2 3.200 60% 1.920 134.400
Authors of Job Cards 5 8.000 40% 3.200 224.000
Authors of CBT/Simulation 10 16.000 20% 3.200 224.000
Aircraft mechanics 50 80.000 20% 16.000 1.120.000
Total 88 37.440 2.620.800
CALCULATE THE VALUE OF IMPROVED WORK FORCE EFFICIENCY
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Determining the likely savings from the adoption of S1000D can now be used to
determine how long it will take to realize a return on investment in S1000D train -
ing, data conversion, and technology.
In our example above, the total savings from 38 people (without the 50 mechan-
ics) was $1.5M after 3 years. In year 1, only 20% of the savings potential was
realized. In year 2, another 50% of the savings potential is realized and the full
savings potential was realized in year 3.
Assuming an investment of $500,000 in technology, $20,000 in implementa-
tion services and $100,000 in software maintenance, the Net Present Value and
Internal Rate of Return over 3 years is highly favorable.
Net savings per year start almost immediately.
MAKING A BUSINESS CASE FOR S1000D - © 2013 CORENA
JUSTIFYING THE INVESTMENTIN S1000D
Year 0 Year 1 Year 2 Year 3
Licenses 500.000
Maintenance 100.000 100.000 100.000
Services 20.000
Total costs 500.000 120.000 100.000 100.000
Total Savings - 300.160 750.400 1.500.800
Net saving/year -500.000 180.160 650.400 1.400.800
Accumulated net savings -500.000 -319.840 330.560 1.731.360
NPV -500.000 173.231 601.331 1.245.306
Accumulated NPV -500.000 -326.769 274.562 1.519.868
NPV 1.519.868
IRR 86%
Interest rate 4%
-1.000.000
-500.000
0
500.000
1.000.000
1.500.000
Year 0 Year 1 Year 2 Year 3
AND HERE IT COMES...
This is what you want to show your boss!
NET SAVINGS START ALMOST IMMEDIATELY
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And the Break Even point (where the NPV is 0), comes after only about 1.5 years.
If you believe these projections are optimistic, remember back to our first case.
They obtained a 48% cost reduction after only 9 months. And for that case we
have not yet even calculated the value of improved availability!
Get in touch if you want us to help you do the calculation!
MAKING A BUSINESS CASE FOR S1000D - © 2013 CORENA
-1.000.000
-500.000
0
500.000
1.000.000
1.500.000
2.000.000
Year 0 Year 1 Year 2 Year 3
WHAT IS THE VALUE OF 1% AVAILABILITY OF YOUR SYSTEMS?
GET IN TOUCH AND LET US HELP YOU!
Call us or send us an email at [email protected] if you want our help to do a value calculation!
BREAK EVEN COMES AFTER ONLY 1.5 YEARS
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The S1000D standard was designed with a modular nature and many predefined
elements for the purpose of improving reuse and interoperability, and thus to
significantly reduce the costs associated with the production of technical publi-
cations.
Implementing S1000D requires some initial investments and this will depend on
your current level of expertise and the formats you are currently supporting.
Initial investments may include XML training, S1000D training, XML Editing tools,
S1000D Business Rule development, S1000D CSDB and IETP technology and
data conversion services.
described above - but to determine your ROI, it is important to understand where
the cost savings and benefits will come from. A number of examples and strate-
gies for determining your return on investment have been provided as part of
this paper.
IN CONCLUSION
MAKING A BUSINESS CASE FOR S1000D - © 2013 CORENA
These investments will be o�set by e�ciency gains and cost reductions as
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FLEXIBLE, COST-EFFECTIVE SOLUTIONS YOU CAN COUNT ON
CORENA is a global software company and one of the world’s leading suppliers of
tribution of technical documentation for complex and mission critical equipment.
CORENA’s products are widely used, primarily by customers within the aerospace,
defense and maritime industries utilizing recognized international standards like
ATA iSpec2200, S1000D, and Shipdex.
and analysis of your technical information processes. www.corena.com
Since its founding in 1981, Data Conversion Laboratory (DCL) has remained faithful
based on a rich legacy of superior customization and exceptional quality. DCL is a
leading US-based organization organization that currently operates one of the most
advanced facilities of its kind, with extensive capabilities to capture data from text
from virtually any medium and reformat it to �t a client's emergent needs.
Specializing in highly complex projects with expertise expertise spanning all industries,
DCL provides a world-class mix of services and software resulting in uncompromised
quality 100% of the time. Our reputation is built on it! www.dclab.com
Join the conversation at our Content Conversion Strategies group on LinkedIn,
ABOUT CORENA
ABOUT DATA CONVERSION LABORATORY
MAKING A BUSINESS CASE FOR S1000D - © 2013 CORENA
to its guarantee to construct unparalleled electronic document conversion services
and follow us on Twitter @dclaboratory.
Contact: Linda CassolaSVP, Sales and Marketing61-18 190th Street, Suite 205(718) 307-5728(770) [email protected]
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